Connect with us

Hi, what are you looking for?

goodbalancefeature.comgoodbalancefeature.com

Investing News

Eskay Mining and P2 Gold Agree to Merge, Focus on Gold and Copper

Eskay Mining (TSXV:ESK,OTCQX:ESKYF) announced plans to combine with P2 Gold (TSXV:PGLD,OTCQB:PGLDF) on Tuesday (June 4) in a move it says will create a new entity focused on gold and copper exploration.

The non-binding letter of intent entered by the two companies outlines a deal through which Eskay will acquire all outstanding P2 Gold shares at an exchange ratio of 0.2778 Eskay shares for each P2 share.

Eskay shareholders will hold 80 percent of the merged company, while P2 shareholders will own 20 percent.

Once the transaction is complete, the company will have assets in BC’s Golden Triangle, as well as Nevada.

Its initial exploration focus will be Eskay-Corey project in the Golden Triangle, which P2 President and CEO Joe Ovsenek said is the region’s most prospective ground without a major discovery to date.

Ovsenek, who has a long history in the Golden Triangle, will become president and CEO of the combined company, while Mac Balkam, who is now president and CEO of Eskay, will take on the chair role at the new entity.

Eskay notes on its website that Eskay-Corey hosts a number of volcanogenic massive sulfide targets, and has the potential to host nickel-copper massive sulfide. It also has several instances of vein-style mineralization.

Looking over to Nevada, P2 will add the Gabbs gold-copper project to the new company’s portfolio. A preliminary economic assessment for the asset highlights the potential for a long-life, mid-size mine with strong production prospects, as well as year-round exploration and development opportunities.

‘With this transaction, Eskay has taken a significant step toward finding the next major resource in the Golden Triangle,” said Balkam. “The addition of the Gabbs property in Nevada puts Eskay on a totally different level as resource explorer.’

In addition to combining exploration assets, the merger is expected to enhance the combined company’s access to capital, providing the financial muscle needed to pursue large-scale exploration and development projects.

The transaction, which will require approval from shareholders and regulators, is expected to close by October 31.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com

You May Also Like

Stock News

SPX Monitoring Purposes: Long SPX 10/27/23 at 4117.37. Gain Since 12/20/22: Over 17%. Monitoring Purposes GOLD: Long GDX on 10/9/20 at 40.78. Last Thursday, we...

Investing News

Global vanadium-producing countries have benefited from infrastructure spending in China in recent years. However, in 2023 and beyond, the market is likely to be...

Investing News

Copper prices have rallied to record highs in recent years on expected demand growth amid a supply deficit. While construction and electrical grids have...

Investing News

Uranium is an important energy sector commodity, and its rising value has attracted investor interest. 2023 has seen uranium prices solidly above the important...